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All Forum Posts by: Daniel Pena

Daniel Pena has started 10 posts and replied 21 times.

Post: Tax on trading properties?

Daniel PenaPosted
  • San Antonio, TX
  • Posts 25
  • Votes 10

@Steven Hamilton II,

I think he is holding the property in his name without any LLC, as for Fair Market value the commercial property has gone way up in value since there has been some development around it. Basically he could sell it for the same amount as the cost of the home they want to trade. Currently there is only a loan on his end.

Post: Tax on trading properties?

Daniel PenaPosted
  • San Antonio, TX
  • Posts 25
  • Votes 10

what are the tax implications of trading one property for another without any cash changing hands? My father has a commercial property that he rents out and someone wants to trade him for a single family house. If he does the trade he would use the house as a primary residence. The difference in what he paid for the commercial property vs the home value is about +100k, that is why I am thinking there may be some tax implications. I told him to go talk to a tax attorney but would like some input from biggerpockets. 

Post: What to do about contract issue?

Daniel PenaPosted
  • San Antonio, TX
  • Posts 25
  • Votes 10
Hello BP, I have a property under contract and everything was moving along smoothly until my bank notified me that the property was zoned commercial and they would not lend on it. No big deal as I was still within my 3rd party financing timeline, my realtor got with the list agent and they said they would take care of the zoning so we sent over the addendum to extend the 3rd party financing date. Now the list agent is MIA and my 3rd party financing expires today. What do I need to do? Now my realtor isn't answering either. I don't want to lose my earnest money. Can I hold my realtor responsible for the earnest money if I do lose it? Any suggestions?

Post: Decent deal?

Daniel PenaPosted
  • San Antonio, TX
  • Posts 25
  • Votes 10
Dean Weltman It is security service federal credit union. The only downside I that you must do 25% down and a 15yr note for investment properties. Ideally I would like a 30 yr note at these current rates but I'll take what I can get.

Post: Decent deal?

Daniel PenaPosted
  • San Antonio, TX
  • Posts 25
  • Votes 10
Andrew Syrios 1. I think I can get it to that ARV with about 15k in upgrades and repairs (minor leveling, it is a pier and beam foundation, paint, some drywall minor update to kitchen and second bath) 2. I am doing my financing through a federal credit union. They gave me that rate on my last rental, they also pay closing cost up to 5k which is a huge plus.

Post: Decent deal?

Daniel PenaPosted
  • San Antonio, TX
  • Posts 25
  • Votes 10
I am looking to pick up my third rental property but been having a hard time finding a deal to cash flow and give me good cash on cash returns. I just found a deal on MLS where the sellers are motivated due to having to relocate to another city. They have lived in the property for 20 years and looks like it's in decent shape. Anyway here are my numbers. Purchase price $65,000 Down 25% Loan 15 yrs @ 3.125 (also no closing costs) Rent $900 Mortgage $340 Taxes $133 per month (taxes kill my numbers) Insurance $50 Vacancy $90 Repair $90 Management $90 Cash flow per month $107 A couple things to note are that with some updates arv is about 115k. I am a buy and hold guy, I do not need the cash flow to supplement my income but I also don't want to lose money or have terrible returns. Last thing is I do my own management so it helps me cash flow more but I always count it in my calculations.

Post: Tax issues in Analysis

Daniel PenaPosted
  • San Antonio, TX
  • Posts 25
  • Votes 10
Stephanie Bureau e I am in San Antonio and run into the same issue. I think the main issue might be due to the high property taxes we have here. This is one of the reasons I focus on C class properties that I can get to cash flow, I also do my own property management which helps but I still run my analysis assuming 10% for management.

Post: Long term guest

Daniel PenaPosted
  • San Antonio, TX
  • Posts 25
  • Votes 10
Fred Dray If there is someone staying with a tenant does the guest have any rights to the rental? If they are not on the lease couldn't I evict the tenants on the lease and consider the guest as someone who is trespassing?

Post: Long term guest

Daniel PenaPosted
  • San Antonio, TX
  • Posts 25
  • Votes 10
Hey BP, I wanted to get some input on how to handle a situation I have with my rental. Last month my tenant told me that they were going to have a guest staying with them for a few days and I said that was fine. Today my tenant called me and said that their friend needs to stay for 6mo to a year and proceeded to give me a story on why and said they would be helping her with the rent. My question is do I need to update the lease to add them and possibly increase the rent? The tenant is in their second year with me and are ok tenants, they pay rent late but always pay the late fee (never more than a week or two late).

Post: Rent primary residence?

Daniel PenaPosted
  • San Antonio, TX
  • Posts 25
  • Votes 10

Hello everyone,

I have been looking for my next rental property to buy for the past 10 months with a few offers submitted but nothing closed. My strategy has been to focus on the lower income properties as this is easier to come up with the 25% down payments, eventually my plan is to move into B+ properties. The market just seems to "hot" right now on the lower priced properties and they still need a ton of work to be what I can accept as rentable.

So today I had a new thought as I was browsing through what is for sale in my own neighborhood. Why not buy another house in my neighborhood with an FHA loan and rent out my current primary residence? I just recently refinanced my primary into a conventional loan so a new FHA is an option. I looked up rental rates in my area and they seem very strong as we have a lot of military in the area. Are there any items I need to consider before going down this road? Here is a breakdown of my thoughts.

1. Primary will rent for about $1650 and current all in costs are $1390. If I count maint, management and repairs it doesn't make sense but the area is still appreciating and it is new so repairs should be low.

2. New house will be a bit smaller than primary but same neighborhood. Our mortgage payment should be similar to current. This gets me two houses in an A class neighborhood that should increase in value.

3. I can get a 200k house for 10k out of pocket vs my current strategy of a 40k property for 10k out of pocket.

4. New house adds some convenience as it backs into my kids school so my wife can just walk them to school and the yard is larger.

What else do I need to consider?